Equities to beat bonds

speakers at threadneedle forum claim investors need to be realistic about expected returns

Equities will outperform other assets classes over the longer term, even though investors need to be educated to be more realistic about the returns they can expect, according to Colin Robertson, European head of global strategy at Threadneedle Investments. Most people, he said, had not yet accepted that the global economic backdrop to investing is characterised by low inflation, distinguishing it from previous eras in which inflation fuelled high equity returns. Until people accept this, he warned, equity returns will remain extremely volatile. The expected return from equities is lik...